Commercial Vehicle to repay second-lien loan with notes proceeds

By Sara Rosenberg

New York, April 8 - Commercial Vehicle Group Inc. plans to repay all of its second-lien term loan using proceeds from a $225 million senior secured notes offering, according to a news release.

Remaining proceeds will be used for repay 11%/13% third-lien senior secured notes due 2013 and 8% senior notes due 2013, and for general corporate and working capital purposes.

In addition, the company said on Friday that it will amend and restate its revolving credit facility to increase the size to $40 million from $37.5 million, extend the maturity to three years after the date of closing and reduce pricing by 50 basis points.

Also, the amendment and restatement will increase the company's flexibility to make investments and allow for the new notes offering.

Commercial Vehicle is a New Albany, Ohio-based supplier of fully integrated system products for the commercial vehicle market, including the heavy-duty truck market, the construction and agriculture markets and the specialty and military transportation markets.

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